Fred's August Comparable Sales Fall 1.4 Percent

MEMPHIS, Tenn. (AP) — Discount retailer Fred's Inc. said Thursday its sales at stores open at least a year fell 1.4 percent in August, despite a strong start to the month.

Analysts polled by Thomson Reuters expected a decline of 0.3 percent.

Fred's CEO Bruce Efird said the results were below the company's expectations since sales slowed at the end of the month. He said sales had started strong because of tax-free holidays.

The period was also affected by the calendar shift and the comparable benefit of last year's Labor Day weekend sales.

"Those factors should reverse in September, so we continue to look for third-quarter comparable-store sales that are even to up 2 percent," he said in a statement.

Sales at stores open at least a year are a key measure of retailer performance because they measure growth at existing stores rather than from newly opened ones.

Total sales in the four-week period ending Aug. 29 fell 1 percent to $128 million.

Year to date, the company's total sales fell 2 percent to $1 billion, while sales open at least a year grew 0.5 percent.

Efird said the company plans to open a pilot test store this month with a new look and product mix.